What is a business owner’s liability regarding changing the terms of a payment agreement after the fact?

I am an hourly, part-time employee not working under a contract. My employer did not inform me of an hourly wage decrease before it had shown on my paycheck the following week. Is this legal?

Asked on January 30, 2013 under Business Law, Indiana


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Under the labor law of all states in this country in order for there to be a valid pay decrease to you per hour you first have to be advised of such and then agree to the decrease in writing before such is implemented. What you have written about suggests that you are owed money from your employer under the agreed upon rate of pay.

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